People's Daily:

We noticed that the PBC introduced a series of structural monetary policy instruments and increased financial support for key areas this year. What effect have these instruments delivered? What's the plan in the future? Thank you.

Zou Lan:

I'll answer your questions. Structural monetary policy instruments have attracted a lot of attention. Just now, Ms. Ruan and I mentioned this topic briefly, and here I would like to give you a more detailed introduction.

Since the beginning of this year, the PBC has introduced three new structural monetary policy instruments. The first is a science and technology innovation re-lending program, which aims to support high-tech enterprises, specialized and sophisticated small and medium-sized enterprises that produce new and unique products, national technology innovation demonstration enterprises, and single-product champion enterprises. The second is a re-lending arrangement for elderly care services, which focuses on supporting eligible institutions to provide publicly-accessible elderly care services and increase their supply. The third is a re-lending program for transport and logistics, which mainly helps highway cargo transport enterprises, truck drivers, and other businesses and individuals greatly affected by the epidemic. In Q4 of last year, the PBC introduced carbon-reduction supporting tool funds and special re-lending to support the clean and efficient use of coal, which are both phased tools. For long-term ones, we issued re-lending and rediscount policies to support agricultural and small enterprises. At present, the toolbox of structural monetary policy has been enriched and improved.

Generally speaking, structural monetary policy instruments focus on key sectors, adopt reasonable and moderate approaches, and build up ample room for maneuver. Meanwhile, a new working mechanism was set up, under which financial institutions are allowed to independently lend money and manage ledgers, the PBC should conduct reimbursement based on an ex-post basis and place a cap on total lending, and relevant departments should specify the purpose of lending and conduct random checks. By doing so, financial institutions are encouraged to optimize their credit structure, and so that their lending can tilt toward key areas, including inclusive finance, green development, and scientific and technological innovation.

So far, the PBC had already allocated 182.7 billion yuan in carbon-reduction supporting tool funds and helped banks to offer 304.5 billion yuan of loans on carbon reduction, which led to over 60 million metric tons of carbon emission reductions. A clean-coal financing program has lent 43.9 billion yuan to businesses. The three new structural monetary policy instruments will be issued on a quarterly basis and will open for application for the first time in July. Currently, the PBC is fast-tracking related procedures.

Next, in accordance with the strategic deployments of the CPC Central Committee and the State Council and the arrangements of a State Council executive meeting, the PBC will continue to make full use of the dual functions of all structural monetary policy instruments so as to better bolster key areas and weak links in the economy. Thank you.